After a major financial overhaul in the spring, Del Taco‘s top boss said the chain would become a more aggressive fast-food brand. In an exclusive interview earlier this week, Chief Executive Paul Murphy said he’s ready to make good on that promise.

“We’re looking at the Southeast part of the U.S.,” Murphy said. “We see Dallas (metro) being 70 to 80 stores.”

The new Del Taco will open in Denton, Tx. in the fall. A second company-operated unit will open in 2011 in McKinney, Tx.

“I think what Del Taco brings to the table [in Texas] is a unique spin on Mexican,” said John Cappasolo, Del Taco’s vice president of marketing. “We feel we are well positioned to go in that market.”

In the spring, Del Taco’s parent company Sagittarius Brands in Nashville refinanced the company’s heavy debt and sold its Captain D’s seafood chain. The deal, along with depressed real estate prices, are paving the way for the 516-unit Del Taco chain to refocus on expansion.

“Now’s the time,” Murphy said.

Del Taco exited the Lone Star state under previous owners in the 1980s. But, the company began showing interest in re-entering the state last year by scouting territories and conducting consumer surveys among local foodies.

Texas and Florida are key areas of expansion for the brand. Beyond that, Murphy declined to be more specific about regions he’s looking to add units.

Murphy said the Dallas expansion will help showcase what Del Taco has to offer to the nation: fresh, made from scratch Mexican fast food.

In Texas, Del Taco is expected to go head to head with locally-based Taco Bueno and Taco Cabana. Both promote freshly made Tex-Mex food.

However, Del Taco said consumer surveys in the region show that its hybrid menu of tacos, burritos, burgers and crinkle-cut fries will fill a fast-food niche.

“We think it helps on the veto vote,” Murphy said, referring to Del Taco’s mixed menu of burgers and tacos. “It allows a car load to come in and go different directions on the menu.”

For years, Del Taco was the No. 2 Mexican fast-food brand behind Irvine-based Taco Bell, which operates around 5,600 restaurants. But, with the fast expansion of Denver-based Chipotle Mexican Grill, Del Taco soon dropped to the No. 3 in both sales and units.

Del Taco isn’t the only local company looking at Texas. Earlier this year, In-N-Out told the Register that it plans to debut its iconic burger brand in Texas. The first Texas restaurant is slated to open in Firewheel Town Center in Garland, Tx.

Join the conversation: Follow the Fast Food Maven on Twitter and Facebook for real-time information on local food news, trends and deals.

Nancy Luna is an award-winning journalist with more than 25 years reporting experience. She's been the Register's restaurant beat writer since 2005, covering some of the biggest players in the industry: In-N-Out, Chipotle, McDonald’s and Taco Bell. Luna also covers dining trends from food halls to food trucks. She writes with authority and is considered an expert in her field.

Join the Conversation

We invite you to use our commenting platform to engage in insightful conversations about issues in our community. Although we do not pre-screen comments, we reserve the right at all times to remove any information or materials that are unlawful, threatening, abusive, libelous, defamatory, obscene, vulgar, pornographic, profane, indecent or otherwise objectionable to us, and to disclose any information necessary to satisfy the law, regulation, or government request. We might permanently block any user who abuses these conditions.

If you see comments that you find offensive, please use the “Flag as Inappropriate” feature by hovering over the right side of the post, and pulling down on the arrow that appears. Or, contact our editors by emailing moderator@scng.com.